Default Management Committee

The Defult Management Group (DMG) is the advisory and supporting committee of the CCP during the Default Process. This committee is composed of individuals from both the NDCM, with proven track record and market experience, and the CCP. Attendance to this group is mandatory.

The DMG functions are, among others:

• Organizations of the fire-drills.

• Set the guidelines of the auction.

• Proposal of improvements of the rules and procedures relating the default management.

• Proposal of the time and way to conduct the hedging transactions of the DCM’s position.

• Proposal of the DCM’s portfolio splitting, or if the case, the division into Auction Units.

• Proposal of the Auction Model, in terms of number of NDCM winners.

• Definition of the Schedule (dates and time) for the portfolio’s auction.

• And, in general any subject related to the default process that BME Clearing could ask for advice.